In a recent news report, the chief executive officer of Binance exchange raised the alarm on X that the evolution of artificial intelligence (AI) poses a threat to the crypto industry as it enables terrible actors to bypass identity checks on crypto platforms.
According to the report, the rapidly evolving artificial intelligence technology has been stirring significant concerns in the crypto industry as experts revealed that AI could be used to manipulate user identity on crypto exchanges.
With constant improvement, the AI sector is gradually moving towards developing deep fake proofs of identification. One of these deepfake apps is the upcoming AI-powered digital Avatar by HeyGen, which can make videos with a digital avatar that looks almost real in just 2 minutes, according to reports.
The rapid progress of the sector has raised concerns in the crypto industry, forcing some big players in the industry to voice out their concerns about the new development of things, especially regarding the safety of crypto entities and investments.
Among the prominent speakers that talked about the issue was Changpeng Zhao (CZ), who posted on his X (Twitter) page on Wednesday, calling attention to the use of artificial intelligence by bad actors in the cryptocurrency space.
HeyGen Set To Launch AI-generated Life-style Avatar
According to Zhao, the new development in the AI sector is looking scary, especially concerning the video verification aspect of crypto exchange. He urged users to be careful when sending assets to people, even if they have sent a video for verification.
According to the report, the Binance CEO raised the alarm because, on crypto exchanges, the know your customer (KYC) protocol mandates crypto investors to present a video clip to prove their identity in order to complete specific transactions.
In his post, CZ pointed out recent AI-powered videos that capture Joshua Xu, the CEO of HeyGen, an AI firm. Displayed in the video was an AI-powered digital avatar that looks exactly like Xu, the avatar replicating the facial expressions, speech patterns, and voice of the HeyGen founder.
Describing the innovation, Xu stated that the videos were his avatar and clone voice which are 100% AI-powered. The Heygen CEO added that his firm has been making significant progress in its effort to enhance the video quality of its lifestyle avatar. He continued that he wants the voice technology to replicate the user’s unique speech patterns and accent.
Furthermore, Xu said the AI-generated avatar would soon be launched to the public for everyone to use. He added that once established, users would be able to create a video with a digital avatar that replicates real-life attributes in a couple of minutes.
AI Deepfakes Enable Bad Actors To Bypass KYC Protocol
Meanwhile, according to the report, allowing the public to have access to AI creative tools such as HeyGen can cause severe problems with identity verification processes on centralized crypto exchanges such as Binance.
This is because, like other decentralized exchanges, Binance implements KYC protocols that require users to send a short clip of themselves and other essential documents in order to use the platform or make withdrawals of specific amounts.
In addition, reports showed that Binance’s verification process specifically asks for the video alongside identity documents like a driver’s license, ID card, or passport that has the user’s picture on it. The protocol also mandates users to state the date and avoid editing or putting watermarks on the video record before submitting it.
Jimmy Su, the chief security officer at Binance exchange, had earlier warned the crypto community about the risks that AI deep fakes can cause. In May, the CSO stated that AI technology is rapidly advancing and evolving at a great rate such that AI deepfakes would soon become difficult for human verifiers to detect.
His fears are gradually becoming a reality as different AI brands work on various projects to perform human tasks without being detected. As the CEO of Binance warned, investors should be careful of sending their assets while properly verifying the receiver’s identity.